Scheisse: German Banks Keep Suing Goldman Sachs

German lender DZ Bank AG sued Goldman Sachs over $188.6 million in mortgage-backed securities, according to Bloomberg, claiming that investment bank misrepresented the loans underlying the securities.

Earlier in the week, Bayerische Landesbank sued Goldman over about $511.9 million in securities underwritten by Goldman, charging that the  securities were riskier than promised and were “destined to fail,” according to Bloomberg, citing a complaint filed Wednesday in New York State Supreme Court.

And IKB Deutsche Industriebank AG sued Goldman, alleging “material misrepresentations” on $73.2 million in mortgage securities. (IKB also sued Citigroup in an apparently similar suit.)

Together which serves to remind us of Michael Lewis’ line about who was buying the worst of the mortgage-backed securities n the run-up to the financial crisis: “Stupid Germans in Düsseldorf.”


<em>Scheisse:</em> German Banks Keep Suing Goldman Sachs